McKinsey & Company, based on data from various companies including Chrono24, announced that the pre-owned luxury watch market is a rapidly growing segment, projected to reach $30 billion (approximately ¥3.29 trillion) in sales by 2025. Online sales account for 30% of the pre-owned watch market, with physical stores at 5%, and growth is expected to accelerate in both markets over the coming years.

Indeed, at Chrono24, a luxury watch marketplace visited by approximately 9 million people monthly, sales of pre-owned luxury watches have been on the rise since 2018. For Japanese users, requests for pre-owned luxury watches accounted for 59.4% of the total, making them the highest in Asia. Compared to the global average, Japanese users are about 30% more likely to request pre-owned luxury watches.

■ Pre-owned Luxury Watch Sales More Than Tripled
Since 2018, sales of pre-owned luxury watches on Chrono24 have more than tripled, and in 2020, pre-owned luxury watches accounted for two-thirds of the GMV (Gross Merchandise Value) share. (See bottom-left chart).

■ 10.5% More Requests for Pre-owned Luxury Watches from Women
While men account for approximately 95% of pre-owned watch requests, women also showed a 10.5% higher rate of requesting pre-owned watches compared to new or unworn timepieces.

■ Younger Generations Show Less Hesitation Towards Pre-owned Luxury Watches
Users aged 18-39, encompassing Millennials and Gen Z, accounted for 61.3% of pre-owned luxury watch requests, an increase of 70% from 2019 to 2020. Users under 30 are 13.49% more likely to request pre-owned luxury watches than new or unworn ones, compared to users aged 50-60. (See bottom-right chart).

In the luxury watch market, consumer values among younger generations are shifting, with a greater emphasis on longevity and usability rather than just price. This change is making the purchase of pre-owned luxury watches increasingly acceptable for Millennials and Gen Z, a trend accelerated by shifts in consumer psychology, such as the surge in 'revenge spending' during the COVID-19 pandemic. Requests for pre-owned items from individuals aged 18-39 increased by 70% from 2019 to 2020.

— From Tim Stracke, CEO of Chrono24 —
“Currently, watch brands have no choice but to develop businesses that can support D2C. The pandemic has dramatically increased customer expectations for online shopping experiences, and brands that have not yet adopted e-commerce are becoming obsolete.
The pre-owned luxury watch market, which is now even more widespread, is creating a major paradigm shift, allowing collectors to 'trade up' more quickly. Watch novices can enter the market sooner. Furthermore, due to the limited supply from watch manufacturers, there is no longer a need to wait for extended periods on waiting lists to acquire items. And passionate watch enthusiasts, following the industry's trends and shifts, are constantly seeking exceptional value and timepieces.”